When I became a Realtor I did not have a sphere in the area I wanted to market. But I was determined to make my real estate career work. I decided to concentrate on For Sale By Owners. I did all the research I could. I looked into statistics, I started keeping track of For Sale By Owner websites to see if the houses shown were still on the market (at the time most websites were inaccurate - not sure today). And I started keeping a list of every For Sale By Owner I came across (whether drive by, newspaper ad, or website). I spent a lot of time calling For Sale By Owners, knocking on their doors, mailing them stuff, or just leaving stuff on their door steps. The end result was over 50% of my business was coming from For Sale By Owners.
At that time the majority of the For Sale By Owners that I went onto represent had been on the market a long time. Many had paid for marketing that just didn’t work. And several by the time they listed with me really needed to sale. Because my statics proved that using a Real Estate Agent gave them a better opportunity to get their home sold or because they were desperate to sale I usually got the listing.
Of all the For Sale By Owners I dealt with one really sticks out in my mind.
These homeowners were a young couple with two children. The husband had gone trough a period of unemployment which had caused them to accumulate a large amount of debt. They need to sale the house to use the equity in the home to pay off the debt.
They needed the money so they had tried to go a cheaper route. They had used a For Sale By Owner Company which charged them a large amount of money to put the house on the Internet and send them a sign. They payed for some newspaper ads and held a lot of open houses. All without success. They did this for over four months without results and the bills were piling up. In their attempt to save the commission they wound up paying more in the long run in expenses and in the bills that were left unpaid.
I listed the home and got it under contract in 34 days. I sold it for only $300 less than what we had it listed for.
Just remember if you really want to do it yourself it may not be worth the potential risk and extra money it costs just to give it a try.
Tags: For Sale By Owner
So your wondering if you need a Real Estate Agent, right? Your thinking . . . look at all that money I could save if I did it myself. But are you really aware of everything that is involved? Selling a home may appear to be easy. Those who have tried it (17%) agree that it is not.
27% of For Sale By Owner Sellers said the most difficult task was understanding and performing paperwork.
There are lots of legal issues that you may not be aware. Real Estate Agents and Real Estate Brokers hold licenses and maintain education to ensure the best possible service. You don’t want to find yourself in a difficult legal situation because you didn’t understand the paperwork. Costly mistakes are common results of not knowing how and what order to handle all arrangements and details.
26% of For Sale By Owner Sellers said the most difficult task was getting the price right.
Not pricing it right can cost you money. In fact most homes sold without the assistance of a realtor are sold below market price. Sellers have but one home to sell while buyers have lots of homes to choose from. Most for sale by owner buyers are looking for a deal and because of sellers time constraints or other issues a below market price is often agreed upon. In effect, the seller has offered the commission to the buyer.
19% of For Sale By Owner Sellers said the most difficult task was selling within the length of time planned.
Potential buyers wonder what’s wrong with a house that doesn’t sell in a reasonable amount of time. Usually they won’t bother taking a closer look. Time spent trying to sell your home yourself can make it much more difficult to sell when it is not sold quickly.
13% of For Sale By Owner Seller said the most difficult task was attracting potential buyers.
Advertising and marketing methods are costly and limited. In today’s market it takes multiple advertising and marketing tactics to get a home sold. Real Estate Agents also make sure that buyers are qualified to buy the homes they look at. Open houses, yard signs, and a newspaper ad are probably not going to attract many buyers let alone qualified ones.
28% of For Sale By Owner Sellers said that the next time they would definitely use an agent to sell their home.
Your home is a costly investment don’t risk it!
Source: Texas REALTOR March 2008
Tags: For Sale By Owner
For over 200 years Realtors have been used for the sale of Real Estate in the United States. Realtors are not just agents. They are experts. They know the area not just in the neighborhood but all details of the transaction. The process is endless.
Here are just a few of the things Realtors do to help you get through the home buying process:
- Loan Process - Finding a mortgage company, knowing what to look for in a loan, and what to expect during the loan process are all things the realtor can assist with.
- House Shopping - Realtors know the neighborhoods. They know where to find that perfect house and who is building the new communities. Realtors can assist you whether you want to find an existing home, build a new home, or find one being sold directly by the owner.
- Contracts - Realtors know the contracts inside and out. They know the loopholes and how to make sure your needs and wants are conveyed to the seller. Contracts also have many different time frames. Realtors make sure everything stays within those time frames to keep you out of default.
- Negotiations - Realtors are seasoned negotiators. They know the market and how to get you the best deal possible.
- Inspections/Repairs - Realtors have lots of contacts. They will assist you with the inspection and repair process to make it as painless as possible. Realtors also negotiate those repairs on your behalf to assit you in getting the best deal.
- Appraisers/Surveyors/Title Companies - All steps of the process. All have time frames and need to be monitored to insure a smooth closing. Again Realtors are your best source.
The details are endless. Why do it without the help of the real estate agent? The best part is Realtors are no cost* to the buyers! Sellers usually pay the commission to your Realtor on your behalf.
* Check all agreements. This may also differ from state to state.